Question 1

A peril is a cause of loss.

Accepted Answer

A) True 
 B)False

Question 2

Antiques,collections,and boats are adequately protected under a standard homeowner's policy.

Accepted Answer

A) True 
 B)False

Question 3

Covered liability perils do not include claims for libel,slander,or character defamation.

Accepted Answer

A) True 
 B)False

Question 4

If you have two insurance policies on the same property,the ____ clause explains how the two insurance companies will share the loss.

Accepted Answer

A) principle of indemnity. 
B) co-insurance clause. 
C) other-insurance clause. 
D) companies' insurable interest. 
E) principle of subrogation. 
A) principle of indemnity. 
B) co-insurance clause. 
C) other-insurance clause. 
D) companies' insurable interest. 
E) principle of subrogation.

Question 5

The 80 percent co-insurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases?

Accepted Answer

A) Policy dwelling limit of $75,000, replacement cost of dwelling $90,000, actual cash value of dwelling $85,000 
B) Policy dwelling limit of $75,000, replacement cost of dwelling $100,000, actual cash value of dwelling $90,000 
C) Policy dwelling limit of $90,000, replacement cost of dwelling $90,000, actual cash value of dwelling $90,000 
D) Policy dwelling limit of $110,000, replacement cost of dwelling $110,000, actual cash value of dwelling $90,000 
E) Policy dwelling limit of $120,000, replacement cost of dwelling $100,000, actual cash value of dwelling $90,000 
A) Policy dwelling limit of $75,000, replacement cost of dwelling $90,000, actual cash value of dwelling $85,000 
B) Policy dwelling limit of $75,000, replacement cost of dwelling $100,000, actual cash value of dwelling $90,000 
C) Policy dwelling limit of $90,000, replacement cost of dwelling $90,000, actual cash value of dwelling $90,000 
D) Policy dwelling limit of $110,000, replacement cost of dwelling $110,000, actual cash value of dwelling $90,000 
E) Policy dwelling limit of $120,000, replacement cost of dwelling $100,000, actual cash value of dwelling $90,000

Question 6

A co-insurance clause will cause insurers to proportionately reduce claims payments unless you carry insurance up to a specific amount,such as 80 percent of the replacement value.

Accepted Answer

A) True 
 B)False

Question 7

Earthquakes are covered under most homeowner's policies.

Accepted Answer

A) True 
 B)False

Question 8

Careful drivers have limited need for liability protection,because they are not likely to be at fault in an accident.

Accepted Answer

A) True 
 B)False

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Buying collision and comprehensive auto insurance from the dealer selling you the car is considered to be a [good | bad] idea.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

A homeowner's policy does not provide protection for the personal property of

Accepted Answer

A) family members at home. 
B) family members while in college. 
C) guests. 
D) tenants. 
E) family members traveling. 
A) family members at home. 
B) family members while in college. 
C) guests. 
D) tenants. 
E) family members traveling.

Question 11

Liability coverage provides payment to the

Accepted Answer

A) insured for damage. 
B) family members of insured. 
C) holder of the auto loan. 
D) lawyer needed to defend criminal offense. 
E) nonfamily members involved in the accident. 
A) insured for damage. 
B) family members of insured. 
C) holder of the auto loan. 
D) lawyer needed to defend criminal offense. 
E) nonfamily members involved in the accident.

Question 12

The principle of indemnity states that the insured can be compensated for an amount equal to his economic loss.

Accepted Answer

A) True 
 B)False

Question 13

The policy that pays based on replacement cost for the home is

Accepted Answer

A) HO-1. 
B) HO-3. 
C) HO-5. 
D) HO-6. 
E) HO-8. 
A) HO-1. 
B) HO-3. 
C) HO-5. 
D) HO-6. 
E) HO-8.

Question 14

Financial responsibility laws in most states are high enough to adequately meet one's auto liability needs.

Accepted Answer

A) True 
 B)False

Question 15

Which Homeowners' policy is best suited for a resident of a rented apartment to cover that person's personal property?

Accepted Answer

A) HO-3 
B) HO-4 
C) HO-5 
D) HO-8 
E) A Homeowners' policy will not apply since the real estate involved is not owned by the insured. 
A) HO-3 
B) HO-4 
C) HO-5 
D) HO-8 
E) A Homeowners' policy will not apply since the real estate involved is not owned by the insured.

Question 16

Auto insurance premiums are generally reduced by

Accepted Answer

A) choosing a higher deductible. 
B) buying a sporty "high powered" car. 
C) moving to a larger city. 
D) avoiding carpooling to work. 
E) all of the above 
A) choosing a higher deductible. 
B) buying a sporty "high powered" car. 
C) moving to a larger city. 
D) avoiding carpooling to work. 
E) all of the above

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Most HO policies [would | would not] contain a clause requiring you to carry insurance equal to a minimum percent of the replacement value of your home in order to be paid in full for small losses.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

The type of car you drive has little effect on your auto insurance premiums.

Accepted Answer

A) True 
 B)False

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[HO-2 | HO-3] is an example of a named peril policy.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

You just purchased an older home with a market value of $100,000 and a replacement value of $180,000.What HO form would meet your needs?

Accepted Answer

A) HO-2 
B) HO-3 
C) HO-4 
D) HO-6 
E) HO-8 
A) HO-2 
B) HO-3 
C) HO-4 
D) HO-6 
E) HO-8

A peril is a cause of loss.

Antiques,collections,and boats are adequately protected under a standard homeowner's policy.

Covered liability perils do not include claims for libel,slander,or character defamation.

If you have two insurance policies on the same property,the ____ clause explains how the two insurance companies will share the loss.

The 80 percent co-insurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases?

A co-insurance clause will cause insurers to proportionately reduce claims payments unless you carry insurance up to a specific amount,such as 80 percent of the replacement value.

Earthquakes are covered under most homeowner's policies.

Careful drivers have limited need for liability protection,because they are not likely to be at fault in an accident.

A homeowner's policy does not provide protection for the personal property of

Liability coverage provides payment to the

The principle of indemnity states that the insured can be compensated for an amount equal to his economic loss.

The policy that pays based on replacement cost for the home is

Financial responsibility laws in most states are high enough to adequately meet one's auto liability needs.

Which Homeowners' policy is best suited for a resident of a rented apartment to cover that person's personal property?

Auto insurance premiums are generally reduced by

The type of car you drive has little effect on your auto insurance premiums.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[HO-2 | HO-3] is an example of a named peril policy.

You just purchased an older home with a market value of $100,000 and a replacement value of $180,000.What HO form would meet your needs?

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 10: Protecting Your Property

A peril is a cause of loss.

Antiques,collections,and boats are adequately protected under a standard homeowner's policy.

Covered liability perils do not include claims for libel,slander,or character defamation.

If you have two insurance policies on the same property,the ____ clause explains how the two insurance companies will share the loss.

The 80 percent co-insurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases?

A co-insurance clause will cause insurers to proportionately reduce claims payments unless you carry insurance up to a specific amount,such as 80 percent of the replacement value.

Earthquakes are covered under most homeowner's policies.

Careful drivers have limited need for liability protection,because they are not likely to be at fault in an accident.

A homeowner's policy does not provide protection for the personal property of

Liability coverage provides payment to the

The principle of indemnity states that the insured can be compensated for an amount equal to his economic loss.

The policy that pays based on replacement cost for the home is

Financial responsibility laws in most states are high enough to adequately meet one's auto liability needs.

Which Homeowners' policy is best suited for a resident of a rented apartment to cover that person's personal property?

Auto insurance premiums are generally reduced by

The type of car you drive has little effect on your auto insurance premiums.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[HO-2 | HO-3] is an example of a named peril policy.

You just purchased an older home with a market value of $100,000 and a replacement value of $180,000.What HO form would meet your needs?

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters